Can't Afford the Basics While Working in Southwest Virginia

By Lewis Loflin

Living in Southwest Virginia, I’ve seen firsthand the economic struggles of the working poor. A 2017 report by the United Way of Bristol confirmed what I’ve long known: half the population in this region can’t afford basic expenses, even when working. I’ve lived in Washington County for over 30 years, 7 miles from Bristol and 2 miles from Scott County, with family roots in Norton (Wise County) and Scott County. For this article, I’ll focus on Bristol, Washington County, Wise County, and Scott County, exposing the harsh realities of poverty, job losses, and low wages, while highlighting some positives of the region. I’ve adjusted historical economic figures for inflation to 2025 dollars to reflect current realities, using cumulative inflation rates of 31.38% from 2017 and 28.67% from 2018, based on U.S. Bureau of Labor Statistics data.

High Poverty Rates Across Southwest Virginia:

The United Way report (News Center 5, July 25, 2017) provided “real poverty rates” that factor in living costs, revealing a dire situation. I’ve long claimed the true poverty rate in Southwest Virginia is 35% to 50% or higher, and these figures support that:

These rates can’t be blamed solely on the coal industry’s decline, as half these counties have no coal industry. The working poor face a trap: they earn too much for government benefits but not enough to get ahead, often one layoff or medical bill away from homelessness. Those on government assistance often give up working entirely, as taking a job risks losing benefits—government penalties discourage self-sufficiency.

Low Wages and Job Losses:

Job growth in Bristol has been limited to retail and call centers, paying around $9–$10 an hour in 2017, often part-time. I adjusted these wages for inflation (31.38% from 2017 to 2025), bringing them to $11.82–$13.14 an hour, still far below a living wage. New housing near the Pinnacle Retail development, which displaced businesses from the Bristol Virginia Mall, had rents of $800–$1,000 per month in 2017. I adjusted these to $1,051–$1,314 per month in 2025 dollars—still unaffordable at these wages. The report mentioned more affordable housing and childcare, but not for those earning $11.82–$13.14 an hour.

Virginia’s minimum wage has increased significantly since 2017, when it was $7.25/hour (same as the federal rate). By 2025, it’s $15.00/hour (Virginia Department of Labor and Industry). I adjusted the 2017 minimum wage for inflation to $9.52/hour in 2025 dollars, showing a real increase in purchasing power of 57.6% ($15.00 / $9.52). While this helps, many local jobs still pay near this minimum. Dr. Steb Hipple’s 2016–2018 analysis (East Tennessee State University) for the Tri-Cities region (including Bristol, Kingsport, and Johnson City) showed median hourly wages of $15–$16/hour in 2018, barely above the 2025 minimum wage. This indicates wage stagnation, as the minimum wage increase hasn’t translated into broader wage growth, leaving workers struggling with rising costs like rent.

A new development offers some hope: the Hard Rock Hotel & Casino Bristol opened its permanent facility on November 14, 2024, at 500 Gate City Highway. It’s expected to create over 1,400 full-time and part-time jobs, up from the 600 jobs at the temporary casino that operated from 2022 to 2024. The $515 million resort, featuring 1,500 slot machines, 50 table games, a 303-room hotel, and multiple dining options, has already drawn over 3 million visitors since 2022 and contributed $68 million in gaming taxes to Virginia. As of March 2025, Hard Rock is still hiring, particularly in food and beverage, which could benefit local workers, including the 60 recently laid off from Bloom restaurant in downtown Bristol. However, it’s unclear if these jobs will pay significantly above the $15–$16/hour median, and the region’s history of job losses remains a challenge.

Updated labor market data from the Bureau of Labor Statistics (BLS) shows the situation remains grim. I adjusted the median annual wages for inflation to 2025 dollars:

The Tri-Cities labor force shrank by 3,440 jobs from 2016 to 2018, during a so-called economic boom. From 2009 (247,965 workers) to 2018 (193,170), the region lost 54,795 jobs—a staggering decline. High poverty, disability rates, and retirees leaving the workforce may explain some of this, but the lack of good jobs is undeniable. Per capita income in Bristol, Virginia (2023, U.S. Census) is $29,675, up from $21,589 in 2018 (which I adjusted to $27,776 in 2025 dollars for comparison), but still below the national average of $41,261. Adjusted for inflation, the 1970 minimum wage of $1.60 was $10.46 in 2018; I adjusted this to $13.46 in 2025 dollars—below the 2025 minimum wage of $15.00/hour but still above many local wages in 2017.

Reliance on Government Transfers:

A 2015 study by the King Institute for Regional Economic Studies revealed a troubling trend: real earned income in Southwest Virginia fell 17% from 2011 to 2014, largely due to coal industry declines. Residents received 72 cents in government transfer payments (e.g., welfare, disability) for every dollar of earned income in 2014, compared to 49 cents in the Tri-Cities and 27 cents nationally. See the full King Institute Report. This heavy reliance on government support, combined with low wages, traps many in poverty.

Positives Amid the Struggles:

Despite these challenges, Southwest Virginia has strengths. Crime rates are low, despite a drug addiction problem among the lower class. The cost of living is lower than much of Virginia, with good infrastructure, roads, and high-speed fiber optic internet. Healthcare is generally good, though doctor shortages persist due to high Medicaid, Medicare, and uninsured populations (75–80%, per local health officials). The Veterans Hospital in Johnson City is one of the best in the nation. Home ownership is high (over 50%, 2023 Census), and housing prices are affordable compared to national averages (e.g., Bristol median home value $165,000 vs. $346,000 nationally). However, public housing in Bristol, Virginia, concentrates crime and social problems.

Personal Perspective and Survival:

As a low-income resident with a disabled spouse, I’ve learned to survive in a rural area with few resources. We’ve navigated the challenges of Medicaid, maintaining dignity and self-sufficiency despite the odds. I’ll continue exposing dysfunctional government and high poverty, but also highlight the community’s strengths—resilience, low crime, and affordability—that make Southwest Virginia home.